Question – Which organization released the report titled ‘Banking on Electric Vehicles in India’ on 21st January 2022?
(a) RBI
(b) Ministry of Finance
(c) SEBI
(d) NITI Aayog, Rocky Mountain Institute and RMI India
Answer—(d)
Related facts—
- On 21 January 2022, NITI Aayog, Rocky Mountain Institute and RMI India released a report titled ‘Banking on Electric Vehicles in India'(BEVI).
- This report underscores the importance of priority-sector recognition for retail lending in the electric mobility ecosystem.
- BEVI provides considerations and recommendations to inform the inclusion of EVs in the Reserve Bank of India’s (RBI’s) priority-sector lending (PSL) guidelines.
- This report indicates that electric two-wheelers, three-wheelers and commercial four-wheelers are the priority segments under the PSL.
- In the coming days, the involvement of other ministries and industry stakeholders will be crucial to ensure that the guidelines laid down can effectively increase EV investment in India.
- Future potential —
- PSL Can Help Unlock EV Financing Market of Rs 40,000 Crore by 2025 and Achieve the COP26 Targets.
- Banks and non-banking financial companies (NBFCs) in India have the potential to achieve an electric vehicle (EV) financing market size of Rs 40,000 crore by 2025 and Rs 3.7 lakh crore by 2030.
- However, retail finance for electric vehicles has been slow to pick up.
- Suggestions —
- To maximise the impact of the inclusion of EVs, the report recommends a clear sub-target and PM(PM stands for —- penalty mechanism) for priority sector lending to renewable energy and EVs.
- Furthermore, it suggests recognition of EVs as an infrastructure sub-sector by the Ministry of Finance and the incorporation of EVs as a separate reporting category under the RBI.
By – Pankaj Pandey
Link:
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1791477